Urban Economics Lecture 10-19 Local and State Governments: 1- basics 2- some economics theory 3- budget balance and deficits 4- pensions and retiree health benefits 1900: state governments dominated, today local governments are still bigger impact people more directly than Federal government transportation, land use, water, fire, education, dominated by state and local many state and local governments facing financial crisis (California) no bankruptcy laws for state governments States-tile: every piece of land is part of 1 state Counties- mainly judicial units, picked up other functions like parks and jails over time- they also tile (like states) every piece of land is in some county, no piece of land is in more than two counties in NY, each of the boroughs is a county Municipalities- particular corporations that have particular services (except in NJ- they don't tile) places that are not municipal in the US Authorities- corporations without taxing power, set up for specific purposes (Port Authority) Bong selling operations Total State and Local Revenue: biggest source= property tax (also general sales tax, income tax, some corporate income tax)

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